NVIDIA, Broadcom CPO enter mass production — three critical bottlenecks
TrendForce reports that with NVIDIA shipping its next‑gen Spectrum‑X CPO switches to select partners and Broadcom’s 51.2T Bailly CPO switch continuing small‑volume shipments, co‑packaged optics (CPO) has officially entered the mass‑production phase. However, supply of optical engines, silicon photonics chips, and advanced packaging will be key factors limiting CPO switch ramp‑up.
📡 Spectrum‑X CPO · Bailly CPO
- NVIDIA Spectrum‑X CPO — co‑developed with TSMC using COUPE advanced packaging, delivering 400 Tb/s throughput; capacity to expand in H2 2026.
- Broadcom 51.2T Bailly CPO — mass‑production enabled by partners Delta Electronics and Micas Networks; achieves 70% power reduction vs. traditional pluggable optical modules; already validated by Meta and other hyperscalers.
🔴 Three supply bottlenecks
1. Optical engine · complex manufacturing
Optical engines integrate lasers, modulators, and other components. The manufacturing process is complex, with stringent yield requirements and thermal‑management challenges. Only a handful of suppliers are currently capable of mass production.
2. Silicon photonics wafer & packaging capacity
Silicon photonics foundry and back‑end packaging demand high precision and reliability. Capacity build‑up takes time, limiting near‑term supply elasticity.
3. Advanced packaging capacity competition
CPO switches rely heavily on advanced packaging such as COUPE. However, AI chips and HPC are also vying for the same packaging capacity, compressing the CPO supply chain.
⚡ Vendor strategies · vertical integration
Facing supply pressure, leading players are pursuing distinct strategies. Some hyperscalers are using long‑term purchase agreements to lock in supply and strategically investing in upstream silicon‑photonics vendors. NVIDIA is deepening collaboration with TSMC to secure advanced packaging capacity, achieving vertical integration. Google and others are accelerating in‑house optical‑component development to reduce reliance on external suppliers.